Pandox : Handelsbanken Nordic Real Estate Webinar 2021

HandelsbankenNordic Real Estate Webinar

25 ▪ 02 ▪ 2021

New interior @Midland Manchester

A well-diversified portfolio

Pandox Group

Property Management

Operator Activities

156 35,060 Hotel properties Rooms	136 29,273 Leased properties Rooms	20 5,787 Operated properties Rooms
SEK 59.5bn Property market value	84% Property market value	16% Property market value

A strong network of brands and partners

Note: The logos are the property of the respective brand owners.

New restrictions, lower demand

Promising start in the quarter……but new restrictions led to gradually lower demandProfitable and cash flow positive

Continued strong financial and liquidity position

Return on equity2)

Growth in total net operating income1)LFL growth in NOI Property Management3)

• 1) Measured as net operating income Property Management and gross profit plus depreciation Operating Activities

• 2) Measured as growth in EPRA NAV, including dividend and excluding proceeds from directed share issue, at annual rate

Liquid funds and unutilised credit facilities

COVID-19 effects on Pandox

Reduced demand due to renewed COVID-19 related restrictionsMinimum and fixed rent main source of income (also expected in Q1)

Unrealised value changes explained by lower anticipated cash flows

Increase in trade account receivables reflecting new and temporary payment terms

Current revenue

Diversified revenue base

Revenues from different operational models and geographiesMinimum rent and fixed rent main source of revenue

• • Approximately MSEK 500 per quarter

• • Revenue-based rents of MSEK 48 in Q4 and MSEK 249 in FY 2020

Rent collection progressing in line with temporary payment termsNo reductions in hotel rents given

Revenues from Operator Activities of MSEK 117 in Q4

Property portfolio

Valuations based on established method

Value change

7

-4.8% YTD

Comments per 31 December, 2020

Valuations made according to same method and model used since the IPO 2015

Downward adjustments due to lower anticipated cash flows, mainly as a result of COVID-19

Conclusive transaction evidence for yields still missing

Yields and cash flow expected to be estimated with greater precision in the coming quarters

Due to COVID-19, only some 60 external valuations were completed during 2020

External valuations are on average some 6 percent below Pandox's internal valuations, but exhibit large dispersion both within and between markets

Total property portfolio market value amounted to MSEK 59,542 (63,469)

Average valuation yield for Investment Properties was 5.44 (5.41) percent and for Operating Properties 6.37 (6.41) percent

Financial position

Financing and capital structure

For definitions, see page 27 in Interim report January-December 2020

Pandox and COVID-19

Three focus areas

Respond - manage the acute phase of the crisisRestart - plan for the recovery

Reinvent - what's next?

Market update

Gaining new insights into the recovery

Recap: Hotel market development 2020

Show: Demand segments in Pandox's portfolio

Explore: Hotel markets outside Europe and their drivers of recoveryNew insights: Into the recovery

Six development levels…

…to get back to full performance

COVID-19 strikes and everything stops

COVID-19 arrives to Northern Europe in March 2020

Societies closed down and travel restrictions were implementedThe hotel market bottoms out in April

When restrictions were lifted in June/July the recovery starts

Summer holiday recovery

During the summer demand increases quite rapidly in EuropeDomestic leisure is the main driver

After the vacation period leisure demand remains stable on weekendsDomestic businesses begin to travel with first signs of smaller meetings

Early autumn plateau

In September occupancy is 45-55 percent in most of Pandox's domestic marketsUp to this point, the recovery is faster than many had expected

However, demand in larger and more international cities remain weak

Second wave brings new restrictions

In October new restrictions are implemented due to "second wave" infectionsIt becomes more difficult to operate hotels again

Demand decreases substantially across all segments

Germany: Occupancy 2020

Regional UK: Occupancy 2020

Nordic regional: Occupancy 2020

Source: Benchmarking Alliance

Demand segments in Pandox's portfolio

Occupancy performance 2020

20%

0%

-20%

-40%

-60%

-80%

-100%

Interstate

Source: Pandox

Resort

AirportSuburbanRegional CitySmall CityLarge CityTotal

Looking at markets ahead of EuropeWhy are they relevant?

Well ahead of Europe in their recoveryWell-developed with many different segmentsMix of domestic and international brandsConsiderable inbound and outbound travel

China: Occupancy 2020

New Zealand: Occupancy 2020

Australia: Occupancy 2020

India: Occupancy 2020

Outlook

It all depends on the restrictions

Q1: demand will be low due to ongoing restrictions

Q2: given successful vaccinations and reduced restrictions… …demand will return in stages with individual leisure returning first …followed by domestic business travel by small and mid-sized companies …strong recovery in domestic markets

Summer could be a bomb?

The period after the summer could be exciting… …with meetings and first signs of international travel

Q&A

Clarion Collection Arcticus, Harstad

Head office Pandox AB (publ) Box 15

SE-101 20 Stockholm Sweden

Visiting address Vasagatan 11 Stockholm Sweden

Tel: [phone]www.pandox.seOrg.nr. 556030-7885

Forward-looking statements.

This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are beyond the control of Pandox AB (publ), may cause actual developments and results to differ materially from the expectations expressed in this presentation.

Scandic Copenhagen